Employer FICA Deferral Due to COVID-19 #
Overview #
This article provides guidance on implementing the Employer FICA Deferral due to COVID-19 in ProPay software as of May 2, 2025. The deferral allows eligible employers to postpone payment of the employer’s portion of FICA taxes.
Eligibility Check #
Before proceeding, review the IRS guidelines to determine if your employer qualifies for the FICA deferral:
IRS Deferral of Employment Tax Deposits and Payments
Implementation Steps #
If your employer qualifies, follow these steps to implement the deferral in ProPay:
- Download the latest version of ProPay.
- Navigate to the Employer Setup Page 3.
- Locate and check the box for FICA deferral (see image below).
[Image placeholder for checkbox location]
Effects on Payroll Processing #
After implementation:
- For payrolls processed after Q1 2025, ProPay will generate 941 Tax Payments without including the Employer’s portion of FICA Taxes.
- If Employer’s FICA has already been paid in Q2, it will be credited against the Q2 941 liability.
- On the Payroll Summary report, in the EMPLOYER’S TAXES SECTION, FICA taxes will be labeled as DEFERRED.
941 Form Update #
Note: We are awaiting instructions for a revised version of the 941 form for Q2 2025.
Troubleshooting #
Common Issues and Solutions #
- Deferral not reflecting in reports
- Ensure you’ve checked the correct box in Employer Setup Page 3.
- Verify that the payroll being processed is after Q1 2025.
- Unable to find the deferral option
- Confirm you’re using the latest version of ProPay.
- Contact support if the option is still not visible.
- Deferral applied to ineligible employer
- Double-check eligibility using the IRS link provided.
- Uncheck the deferral box if applied in error and reprocess payroll.
Additional Support #
For further assistance:
- Access the ProPay help menu within the software.
- Visit our website: https://www.Paysoft.com
Feedback #
We value your input! Please send any feedback or suggestions for improving this article to [email protected].
Note: This article is current as of May 2, 2025. Please check for updates regularly as tax regulations and software features may change.